Trading analysis

GBP/USD (a 4-hour chart)

General overview

A pound is in the correction. The pair is working out a "dead cross".

Chinkou Span entrenched below the price and the price is below the Ichimoku cloud. The target of the downward movement is the support level 1.5051. We expect the downward movement continue. The first target is the level 1.4941.

The downward movement is relevant as long as the price is below the Kijun-Sen (1.5293). Should the price consolidate above this line that might cancel the sell signal.

The Chinkou Span is below the price that means a bearish mood of traders.

Bollinger Bands show a downward movement.

MACD is pointing up, indicating an upward corrective movement.

Trading recommendations

We recommend opening short positions to 1.5051. If the price is fixed below this level, the downward movement will proceed to the level 1.4941.

Trading in financial markets involves substantial risks, including complete possible loss of investment capital. This activity is not suitable for all investors. High leverage increases the risk (Risk Disclosure).